Chapter 4 AA

Chapter 4 AA - as a liability and thus shown below...

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Chapter 4: Questions 1. Non-controlling interest in simple terms can be defined to be the stake or holding of those investors who does not have a significant controlling interest in the company. Whwn one company acquires more than 50% shares in a company thereby acquiring significant control over the business then the interest of the remaining people is regarded as non-controlling interest. 4. The non-controlling interest should be reported below the stockholders equity in the consolidated financial statements. This is because the consolidation is done on a total basis and those interest which is not owned by the holding company should be reported
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Unformatted text preview: as a liability and thus shown below shareholders equity. 5. The non-controlling interest in the subsidiary is calculated as under Share in share capital XX Add: Share in profits XX Non-controlling interest XX Problems: 4. ANSWER!!! Patent Value $45,000 Life of Patent 10 Ownership 80% Patent book value in consolidated statement as on 2011 $36,000 Amortization for 2011 $3,600 Amortization for 2012 $3,600 Patent should report 2012 dec 31st after Amortization $28,800 Hence the Patents value should report in consolidated statement at Dec 31 2012 is $28,800 8. 23....
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Chapter 4 AA - as a liability and thus shown below...

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